Boeing Stock (NYSE:BA)
On Tuesday, analysts at Northcoast Research changed their recommendation on Boeing stock from Neutral to Sell. They predicted that the aircraft manufacturer would not boost the production of commercial jets due to global supply chain restrictions.
After talking to influential people in the aerospace business, Northcoast analyst Chris Olin wrote on April 4 that “black clouds are developing over the aerospace bellwether peer group” and that “multiple turbulence blips” had appeared on the company’s radar.
Northcoast’s industry sources are doubtful that Boeing (NYSE:BA) will be able to meet its goal of increasing 737 single-aisle aircraft deliveries to 38 per month this summer or that Airbus (OTCPK:EADSF) (OTCPK:EADSY) will be able to meet its goal of producing more A320 planes. According to the research, uncertainty of jet engine production, steep learning curves for new assets or suppliers, illogical order behavior, and conflicting messages across Europe are among their top worries.
Northcoast expresses fear that CFM International, a major engine manufacturer, may not be able to meet the demand for its cutting-edge aviation propulsion (LEAP) engines from Boeing (BA) and Airbus (OTCPK:EADSF) (OTCPK:EADSY).
Reports of lagging engine production and potential supply chain instability have been circulating through the channels. Recent inspections have shown an increasing degree of contact anxiety. The conditions are almost perfect for a letdown in engine delivery in 1H23 and the associated rescheduling of 737/A320 production.
Northcoast notes that the pessimistic outlook comes as a surprise in light of General Electric’s optimistic outlook on jet-engine production last month. GE and Safran Aircraft Engines of France formed CFM International.
The company reduced its 2023 profit forecast for Boeing by $1.10 per share to a loss of -$1.74. The company also predicted Boeing shares would reach $180 within a year.
The March order and shipment numbers for Boeing will be made public next week. Financial services provider Baird predicted Monday that Boeing would announce 67 commercial aircraft deliveries for the month, increasing the quarterly total to 133.
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Author Shariq Khan 
